Condo I Want And Can Afford Or FHA MultiF That Needs Renters?
Hello BiggerPockets Community, I am looking to buy my first property and wanted some help addressing some issues I am having or I am not seeing. First I can get an FHA loan but, I hate LIVING in houses and would prefer to live in a condo and rent out a multifamily or condo. The mortgage on a duplex where I would be comfortable living in for a short time in my market (Bronx, NY) I would only be able to cover if my tenants pay me rent. If either myself or my tenant take a financial hit/job loss that mortgage payment would not be able to be paid on time until my tenant AND I are both working. My question is If I am only able to make the mortgage payment if my tenant pays me rent does that mean that I am unable to afford this property now?
The second issue I am having is that I would prefer to live in a condo preferably a 2bdrm by myself where I can rent out the other bedroom if I want to or need to on AirBNB( If the condo board and NYS still allow it) or to a roommate. I can afford to make the mortgage payments with or without a tenant/roommate. If I put down 20% on the condo I would be able to ride out any financial storms that comes my way but, in putting 20% down I would eat up a lot my investment capital and have to start saving money again for my next purchase. I would also be able to ride out a financial storm if I put 3.5% down on an affordable condo but, I have had great difficulty finding FHA Condos in my area that are affordable. Interests rates are set to rise by the end of the month which means home prices should drop some and if I have put down 20% on my condo I may not be able to take advantage of buying a small multifamily at an affordable price to invest in.
To add some more context to this I am 100% free of bad debt. The right buy can get me out of the rat race. If I buy a condo that is not cash flowing to live in I will have immediately brought a liability that I want and will have the comfort that I seek but, it won't taking me to financial freedom as quickly as a cashflowing duplex. If I buy a duplex via FHA loan that cashflows I will be on the road to financial freedom but, in a living situation I would not want to be in temporarily. Does anyone have any strategies, insight, or advice for someone with my dilemma or any suggestions for someone who would like to start investing as an owner occupant of a condo?